Wal Mart Stores (WMT) has reported 8.17 percent fall in profit for the quarter ended Oct. 31, 2016. The company has earned $3,034 million, or $0.98 a share in the quarter, compared with $3,304 million, or $1.03 a share for the same period last year.

Revenue during the quarter went up marginally by 0.66 percent to $118,179 million from $117,408 million in the previous year period. Gross margin for the quarter expanded 45 basis points over the previous year period to 25.97 percent. Total expenses were 95.67 percent of quarterly revenues, up from 95.13 percent for the same period last year. That has resulted in a contraction of 54 basis points in operating margin to 4.33 percent.

Operating income for the quarter was $5,119 million, compared with $5,714 million in the previous year period.

"We had a solid third quarter. Our e-commerce growth accelerated, operations in the U.S. continued to strengthen and international delivered another solid performance. We are pleased that we can see real progress stemming from our strategic choices and we appreciate the great work by our associates. Yet, we are not satisfied. We will continue to change and pick up speed to reach our longer term aspirations. We’re positioned well for this important fourth quarter and wish everyone a happy, peaceful and prosperous holiday season." Doug McMillon, president and chief executive officer, Wal-Mart Stores, Inc.

For financial year 2017, the company projects diluted earnings per share to be in the range of $4.34 to $4.49. The company projects diluted earnings per share to be in the range of $4.20 to $4.35 on adjusted basis.

The company has spent $11,050 million cash to meet investing activities during the nine month period as against cash outgo of $7,567 million in the last year period. It has incurred net capital expenditure of $6,676 million on net basis during the nine month period, down 15.07 percent or $1,185 million from year ago period.

The company has spent $11,135 million cash to carry out financing activities during the nine month period as against cash outgo of $9,259 million in the last year period.

Cash and cash equivalents stood at $5,939 million as on Oct. 31, 2016, down 15.04 percent or $1,051 million from $6,990 million on Oct. 31, 2015.

Working capital remains negative
Working capital of Wal Mart Stores was negative $10,729 million on Oct. 31, 2016 compared with negative $5,380 million on Oct. 31, 2015. Current ratio was at 0.86 as on Oct. 31, 2016, down from 0.92 on Oct. 31, 2015.

Cash conversion cycle (CCC) has decreased to 12 days for the quarter from 13 days for the last year period. Days sales outstanding were almost stable at 4 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 26 days for the quarter compared with 50 days for the previous year period. At the same time, days payable outstanding went up to 42 days for the quarter from 41 for the same period last year.

Debt comes down marginally
Wal Mart Stores has recorded a decline in total debt over the last one year. It stood at $50,005 million as on Oct. 31, 2016, down 4.68 percent or $2,457 million from $52,462 million on Oct. 31, 2015. Total debt was 24.17 percent of total assets as on Oct. 31, 2016, compared with 25.57 percent on Oct. 31, 2015. Debt to equity ratio was at 0.62 as on Oct. 31, 2016, down from 0.63 as on Oct. 31, 2015. Interest coverage ratio deteriorated to 8.41 for the quarter from 9.97 for the same period last year.